JOURNAL OF ECONOMIC INTERACTION AND COORDINATION, vol.9, no.1, pp.53-67, 2014 (Journal Indexed in SSCI)
Article / Article
Title of Journal :
JOURNAL OF ECONOMIC INTERACTION AND COORDINATION
This experimental study investigates insurance decisions in low-probability, high-loss risk situations. Results indicate that subjects consider the probability of loss (loss size) when they make buying decisions (paying decisions). Most individuals are risk averse with no specific threshold probability.